Student Loan Forgiveness, What You Need to Know

Student Loan Forgiveness, What You Need to Know

President Biden issued a student loan forgiveness plan for up to $20,000 of federal student loan debt for people who meet certain requirements.

Furthermore, the US government claimed the student loan forgiveness program could benefit more than 40 million people.

However, the plan got several legal challenges, so it’s temporarily blocked from discharging loans.

Here’s what you need to know about Biden student loan forgiveness checks.

1. Will my student loans be forgiven? Yes, as long as you have held undergraduate, graduate, and Parent PLUS loans on or before June 30, 2022.

You’ll get $10,000 in student loan forgiveness checks if you earn less than $125,000/year (single borrowers) or $250,000/year (household).

Meanwhile, borrowers who fall under the income caps will receive up to $20,000 in student loan checks

2. Which student loans are not forgiven? Most federal student loan recipients are eligible for having a student loan forgiveness plan

On the other hand, certain loans from FFEL and Federal Perkins Loan Program loan with private lenders are not forgiven.

Therefore, you need to contact your loan servicer to determine whether you can receive student loan forgiveness or not.

3. Are student loans being forgiven after 10 years? Borrowers can still receive student loan forgiveness after 10 years if they meet the requirements.

So, after understanding what student loan forgiveness checks go to who, you can determine your next move.